Navy Awards $23.1M Engineering Services Contract to VSOLVIT LLC Under Full and Open Competition

Contract Overview

Contract Amount: $23,104,682 ($23.1M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-07

End Date: 2026-03-06

Contract Duration: 729 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AMENDMENT 0001 TO SOLICITATION N6893623R3003 CLARIFIES THE GOVERNMENT'S EVALUATION PROCESS IN SECTION M, PART A, PARAGRAPH 2.0 BY INSERTING THE PROPER TABLE AND DEFINITIONS IN SECTION M, PART C.

Place of Performance

Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to VSOLVIT LLC for work described as: AMENDMENT 0001 TO SOLICITATION N6893623R3003 CLARIFIES THE GOVERNMENT'S EVALUATION PROCESS IN SECTION M, PART A, PARAGRAPH 2.0 BY INSERTING THE PROPER TABLE AND DEFINITIONS IN SECTION M, PART C. Key points: 1. Contract awarded to VSOLVIT LLC for engineering services. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 729 days. 4. The award type is a delivery order. 5. The contract is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award amount is $23.1M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure cost-effectiveness.

Taxpayer Impact: Taxpayer funds are being utilized for engineering services, with the potential for cost efficiencies through competitive bidding, but risks associated with CPFF contracts remain.

Public Impact

Procurement of essential engineering services for the Department of the Navy. Competition ensures a market-driven price for services rendered. Contract duration of two years allows for sustained support. Potential for cost growth due to CPFF contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector critical for defense and infrastructure projects. Spending in this sector is substantial, and competitive procurement is standard practice.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the scope was not suitable for small businesses.

Oversight & Accountability

The amendment clarifies the evaluation process, indicating ongoing efforts to ensure transparency. However, the CPFF structure necessitates robust government oversight to manage costs and ensure performance.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to VSOLVIT LLC. AMENDMENT 0001 TO SOLICITATION N6893623R3003 CLARIFIES THE GOVERNMENT'S EVALUATION PROCESS IN SECTION M, PART A, PARAGRAPH 2.0 BY INSERTING THE PROPER TABLE AND DEFINITIONS IN SECTION M, PART C.

Who is the contractor on this award?

The obligated recipient is VSOLVIT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2024-03-07. End: 2026-03-06.

What is the estimated profit margin for VSOLVIT LLC under this Cost Plus Fixed Fee contract?

The specific profit margin is not detailed in the provided data. Cost Plus Fixed Fee (CPFF) contracts include a fixed fee, which represents the contractor's profit. This fee is negotiated upfront and remains constant regardless of the final cost of the contract, incentivizing the contractor to control costs to maximize their profit margin.

What are the specific engineering services being procured, and how do they align with the Department of the Navy's strategic objectives?

The provided data identifies the NAICS code as 541330 (Engineering Services) but does not specify the exact nature of these services. To assess strategic alignment, a review of the contract's statement of work (SOW) would be necessary to understand if the services support specific naval modernization, maintenance, or operational requirements.

How will the government ensure cost control and prevent potential overruns given the CPFF contract type?

Effective oversight is crucial for CPFF contracts. The government will likely employ strategies such as detailed cost monitoring, regular audits, performance reviews, and strict adherence to the contract's scope of work. Establishing clear milestones and deliverables, along with robust communication channels with the contractor, are also key to managing costs and ensuring value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893623R3003

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2831 SAINT ROSE PKWY STE 286, HENDERSON, NV, 89052

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $45,084,126

Exercised Options: $29,045,567

Current Obligation: $23,104,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8820

IDV Type: IDC

Timeline

Start Date: 2024-03-07

Current End Date: 2026-03-06

Potential End Date: 2029-03-06 00:00:00

Last Modified: 2026-02-13

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